Ship Finance International Snaps up 19,400 Teu Boxship Pair

Ship Finance International acquired two containerships at the end of 2018.

It is a pair of 2016-built 19,400 teu boxships contracted until late 2033

The charters are worth $470m with a purchase obligation at the end of the charter period.

The company added more than $1.2 billion to their charter backlog in a series of accretive acquisitions in 2018.

John Fredriksen’s Ship Finance International has finished off 2018 with the acquisition of two containerships, its fourth deal in the sector for the year, says a news article.

Long Term Charters

The company has added a pair of 2016-built 19,400 teu boxships and contracted them until late 2033 on long-term bareboat charters. The charters are worth around $470m, and the client has a purchase obligation at the end of the charters.

Ole Hjertaker, CEO of Ship Finance Management, commented, “This new acquisition broadens our relationship with one of the world’s largest liner companies.”

A Strong Standing

Paraphrasing the CEO, over the last nine months, the company has added more than $1.2 billion to their charter backlog in a series of accretive acquisitions. In this case, its equity investment is limited to approximately $15 million per vessels as it has secured non-recourse lease financing with a tenure matching the charter period. Ship Finance Management believes that its strong balance sheet and ability to source attractively priced capital will allow the continued growth of its charter backlog and cash flow visibility going forward.

About the Company

Ship Finance International acquired a fleet of 15 feedermax vessels in March, four 14,000 teu boxships in June and three 10,600 teu boxships in August. This latest deal takes its boxship tally for the year to 24 vessels.